Almost-Free Gas Comes at a High Cost

CARACAS, Venezuela—In this dilapidated tropical capital, most prices go up monthly, and essentials like milk and flour are hard to find. But one item is ubiquitous, and practically free: gasoline.

Premium gasoline in Venezuela costs 5.8 U.S. cents a gallon, using the official exchange rate. At an informal currency exchange rate that prevails for most transactions, it is even cheaper: 1.5 cents a gallon.